COMPANY NEWS; DION AGREES TO PURCHASE STANDARD COMMERCIAL

Published: November 9, 2004

Dimon, a tobacco-leaf dealer, agreed to buy a smaller competitor, the Standard Commercial Corporation, for about $255 million in stock, the companies said yesterday. The transaction values Standard Commercial's 13.7 million outstanding shares at $18.66 each, a 13.8 percent premium over the closing price on Friday. Including Standard Commercial's debt, the transaction is valued at about $670 million. Dimon shareholders will control 52 percent of the new company, which will be called DimonStandard. The company expects to save $40 million in annual costs and to increase earnings beginning next year. Investors will receive three Dimon shares for each share of Standard Commercial. Dimon is based in Danville, Va., and Standard Commercial is based in Wilson, N.C.